(a) As used in this section, "concentrated code delinquency area" means an area of at least one-half (1/2) square block in which:

1. (1) at least two-thirds (2/3) of the lots are occupied by improvements;
2. (2) at least two-thirds (2/3) of the improvements are homes; and

3. (3) an investigation by the agency shows that at least one-half (1/2) of the homes are not in compliance with applicable building code standards.

   The agency may conduct an investigation on its own initiative, and shall conduct an investigation on receipt of a petition signed by the occupants of at least one-half (1/2) of the family dwelling units within the proposed area. In conducting the investigation, the agency may use its own staff or hire independent appraisers and inspectors.

(b) Rehabilitation loans may be made to enable the borrower to make repairs that will bring the borrower's home into compliance with applicable building code standards, if all of the following conditions are present:

1. (1) The borrower holds marketable title to the property, subject only to mortgage indebtedness or contract for the purchase of the property, the lien of taxes that are not yet due and payable, and any assessment for public improvements that is not yet due and payable.
2. (2) The property is located within the area of a community development target area designated by an application to the Department of Housing and Urban Development under the 1974 Community Development Act, as amended (42 U.S.C. sections 5301-5318), an urban renewal project, a concentrated code delinquency neighborhood, or an area needing redevelopment.
3. (3) The agency has determined that the borrower is an acceptable credit risk. In making this determination, the agency shall be guided by the fact that a principal purpose of this chapter is to make rehabilitation available to those who would be unable to obtain such loans through normal commercial channels.
4. (4) The borrower has in full force and effect a policy of insurance protecting the property in an amount and with an insurer satisfactory to the agency.

(d) The agency in a consolidated city shall use the procedures prescribed by law to make a finding that an area is an area needing redevelopment.

[Pre-Local Government Recodification Citations: Acts 1975, P.L.195, SECTION 2 part; 18-7-7.5-1 part; 18-7-7.5-3; 18-7-7.5-8; 18-7-7.5-9.]

As added by Acts 1981, P.L.309, SEC.35. Amended by Acts 1981, P.L.310, SEC.92; P.L.185-2005, SEC.49; P.L.127-2017, SEC.208.